The pseudonymous Majin isn’t the most popular trader on Crypto Twitter, but even haters must admit that he’s got a knack for reading the market and has been on a hot streak since at least December 2018.
Just to give you an example of how he called the bitcoin bottom, he tweeted a chart on January 28 that shows the leading cryptocurrency bottoming out at $3,200 and pumping above $4,000.
This triggers the bear. pic.twitter.com/nIR4LfUFQE— Majin (@majinsayan) January 28, 2019
When bitcoin breached $8,000, the trader continued to be bullish. Majin relied on a technical indicator (white dots) showing that bitcoin was trending higher.
Unfortunately, Twitter’s biggest bitcoin bull has now turned bearish. In a series of tweets, Majin explains why he suddenly reversed course on his outlook, and it has to do with a technical indicator called volume-weighted average price (VWAP).
On July 25th, Majin posted a tweet showing that for the first time since February 2019, we are trading below the VWAP (turquoise line).
This is quite literally the first time since februari that beras are in control. We're trading below june's vwap and our last pump failed to break it upwards. Magical white dots have acted as ideal short-entry lately pic.twitter.com/kzGrSUvW42— Majin (@majinsayan) July 25, 2019
This is a bearish signal because it means that traders who recently bought positions are losing money. And, if they’re losing money, they’ll likely cut their losses soon. This can ignite a downward spiral that sends bitcoin to lower levels.